Page:United States Statutes at Large Volume 120.djvu/395

 120 STAT. 364

PUBLIC LAW 109–222—MAY 17, 2006

(d) EFFECTIVE DATE.—The amendments made by this section shall apply to offers-in-compromise submitted on and after the date which is 60 days after the date of the enactment of this Act.

26 USC 6159 note.

SEC. 510. INCREASE IN AGE OF MINOR CHILDREN WHOSE UNEARNED INCOME IS TAXED AS IF PARENT’S INCOME. 26 USC 1.

26 USC 1 note.

(a) IN GENERAL.—Section 1(g)(2)(A) (relating to child to whom subsection applies) is amended by striking ‘‘age 14’’ and inserting ‘‘age 18’’. (b) TREATMENT OF DISTRIBUTIONS FROM QUALIFIED DISABILITY TRUSTS.—Section 1(g)(4) (relating to net unearned income) is amended by adding at the end the following new subparagraph: ‘‘(C) TREATMENT OF DISTRIBUTIONS FROM QUALIFIED DISABILITY TRUSTS.—For purposes of this subsection, in the case of any child who is a beneficiary of a qualified disability trust (as defined in section 642(b)(2)(C)(ii)), any amount included in the income of such child under sections 652 and 662 during a taxable year shall be considered earned income of such child for such taxable year.’’. (c) CONFORMING AMENDMENT.—Section 1(g)(2) is amended by striking ‘‘and’’ at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting ‘‘, and’’, and by inserting after subparagraph (B) the following new subparagraph: ‘‘(C) such child does not file a joint return for the taxable year.’’. (d) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years beginning after December 31, 2005. SEC. 511. IMPOSITION OF WITHHOLDING ON CERTAIN PAYMENTS MADE BY GOVERNMENT ENTITIES.

(a) IN GENERAL.—Section 3402 is amended by adding at the end the following new subsection: ‘‘(t) EXTENSION OF WITHHOLDING TO CERTAIN PAYMENTS MADE BY GOVERNMENT ENTITIES.— ‘‘(1) GENERAL RULE.—The Government of the United States, every State, every political subdivision thereof, and every instrumentality of the foregoing (including multi-State agencies) making any payment to any person providing any property or services (including any payment made in connection with a government voucher or certificate program which functions as a payment for property or services) shall deduct and withhold from such payment a tax in an amount equal to 3 percent of such payment. ‘‘(2) PROPERTY AND SERVICES SUBJECT TO WITHHOLDING.— Paragraph (1) shall not apply to any payment— ‘‘(A) except as provided in subparagraph (B), which is subject to withholding under any other provision of this chapter or chapter 3, ‘‘(B) which is subject to withholding under section 3406 and from which amounts are being withheld under such section, ‘‘(C) of interest, ‘‘(D) for real property, ‘‘(E) to any governmental entity subject to the requirements of paragraph (1), any tax-exempt entity, or any foreign government,

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